Buy Eclerx Services, target price Rs 3150: IIFL Securities

IIFL Securities issued a buy recommendation for Eclerx Services on October 01, with a target price of Rs 3150. This implies an upside potential of around 2.5% from the current market price of Rs 3071.85. The brokerage firm cited the company's strong execution, diversified revenue streams, and strong balance sheet as key reasons for its bullish stance. Eclerx Services is a leading provider of data analytics and digital transformation services. The company's clients include several Fortune 500 companies across various industries.

About Eclerx Services:

Eclerx Services is a leading global provider of business process management (BPM) and information technology (IT) services. Headquartered in Mumbai, India, the company operates across 12 countries and employs over 16,000 professionals. Eclerx offers a range of services including application development, maintenance, and support; data management; infrastructure management; and technology consulting. The company serves clients in various industries, including banking, financial services, insurance, healthcare, and manufacturing. Eclerx has a proven track record of delivering high-quality, cost-effective solutions to its global client base.

52 Week Price Trend:

Eclerx Services (NSE: ECLERX) is trading at Rs 3071.85, hovering between its 52-week high of Rs 2828 and 52-week low of Rs 1272. The stock has witnessed a remarkable upward trajectory, gaining approximately 142% since its low point. This significant growth indicates strong investor confidence in Eclerx's business prospects. The company's focus on digital transformation, data analytics, and cloud computing services has positioned it as a leader in the IT industry, driving its share price higher.

Stratzy's MOST Analysis:

ECLERX has received the highest rating, AAA, from Stratzy's MOST framework. This indicates that the company exhibits low fundamental risks, as determined by its strong performance in terms of Management, Outlook, Safety, and Trend. The AAA rating suggests that ECLERX has a solid management team, a positive outlook for growth, a stable financial position, and a consistent upward trend in its performance. Overall, the Stratzy's MOST framework assessment reflects a high level of confidence in ECLERX's fundamental strengths.

Company's Fundamentals:

Eclerx Services (NSE: ECLERX) is a mid-cap IT company with a market capitalization of around $1 billion. The company has a decent stock PE of 23.27, indicating that its earnings per share are 23.27 times its current market price. Its PB ratio of 6.07 implies that the company's market value is 6.07 times its book value. This suggests that the company's market value is higher than its asset value. However, the company's dividend yield of only 0.04% is a concern, as it indicates that it does not distribute a significant portion of its profits to shareholders in the form of dividends.

Fundamental and Technical information provided in this blog were last updated on 01 Oct, 2024

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